Wordpress going for Twitter's Jugular with Prologue?

A Group Twitter, that's how Matt Mullenweg from Wordpress describes Prologue, the newest add-on to the Wordpress-o-sphere.

Prologue will be released as a standard theme for Wordpress.com which means that tens of thousands can already start using it.

The new service adds threading to the comments, making it a interesting cross between forums and twitter-like solutions which tend to be flowing chronologically.

Blogherald says that this would be particularly useful for small groups and internal communications within companies.

Matt describes in a post how it works and it looks like this might be a killer application that many "Wordpressers" were waiting for; complete with RSS support, tagging and mug shot pictures

It is not yet a Social Networking platform but by bringing onboard Twitter-like functionality to the Wordpress platform, Automattic sends a clear signal to the rest of the web 2.0 audience; don't forget Wordpress.

Prologue has been released as a GPL application which means that programmers and Wordpress addicts will tinker with it and hopefully come up with some interesting ideas.

The news comes a few days after four companies, including the New York Times Company, invested $29.5 million in the blogging company, which values it at between $150 and $200 million according to the Wall Street Journal.

The company generates revenue through premium storage and services for Wordpress and have also just announced that they are boosting their storage capacity to three Gigabytes to encourage people to upload multimedia content.